New York prosecutors chasing a Trump indictment look like Wile E. Coyote

 Jonathon Moseley:

Did leftists learn nothing from the adventures of Wile E. Coyote forever trying to catch the Roadrunner but always failing?  New York prosecutors under District Attorney Cyrus Vance, Jr. have convened a grand jury to investigate The Trump Organization (“TTO”) owned by former President Trump and his family (replacing the one already convened in 2018).

There is nothing to stop an indictment of Trump, other than remembering what happened to the Duke Lacrosse player prosecutor.  But the deep state’s attempt to arrest and indict Trump will fail. 

It is starting to look as if the endless adrenaline high is the real point.  If the New York prosecutors’ investigation is measured in news headlines, then they have already accomplished what they hoped.

Getting leftists stirred up with breathless anticipation that President Trump is about to be hauled away in handcuffs isn’t about the truth.  It’s about whipping up their campaign volunteers into a frenzy and demoralizing Trump voters.

Prosecutors seem eager to convince people that their investigation is a real threat.

The leaks tell us that possible crimes – by the businesses, not Trump individually -- range from tax fraud by undervaluing real estate for tax purposes, bank fraud (in loans), and insurance fraud by overvaluing the same real estate on loan applications and for insurance coverage.  The amount lost is apparently $0.00.  The banks, insurance companies, and tax authorities have only lost time and money responding to District Attorney Vance.

Valuation of commercial real estate is an art, not a science.  To say that TTO’s valuation is “wrong” or “false” is like nailing jello to a wall.  Does one use the original construction cost?  The cost to rebuild it today?  The income potential?  Recent sales of similar properties, which for this type of real estate are not easily comparable?  An owner’s opinion of value is too uncertain to be “wrong.”  That’s why no lender pays any attention to it.

For real estate taxes, New York City has a tax assessor.  They don’t ask you how much your office building is worth.  They tell you.  If you don’t agree, you can file a protest.  Good luck. 

What about the deduction for mortgage interest?  That also has nothing to do with the actual value of the real estate.  The lender issues a Form 1099 to show how much interest a borrower actually paid to the mortgage lender. 

Trump’s tax returns have been continuously audited.  An audit means, by definition, looking at the underlying financial records to see if they match the tax returns.  The documents that New York prosecutors just obtained have been in the possession of the IRS and New York tax agencies for years, if not decades.  The 2018 grand jury asked to see the same documents that tax agencies already hold in confidence.  The audits found nothing wrong after examining all the records.

The same with bank fraud.  No mortgage lender issues a loan without hiring their own independent real estate appraiser.  The lender, not the borrower, hires the appraiser.  The appraiser answers to the lender in all questions.  No lender cares what you think your property is worth.

...

I have done legal work on several multimillion-dollar financings and the allegations of the prosecutors in the Trump investigation do not sound remotely plausible.  

When these financings are done the borrower's accountants and lawyers sign off on the accuracy of the information provided and the legality of the transaction.  The lender reviews the financial statements provided by the borrower's accountants.  The borrower does its own due diligence to get comfortable with the borrower's ability to repay the loans.  

Usually, the lawyers and accountants involved in these transactions are from top-of-the-line firms.  The representations are made to the lender.  What he is looking for is assurances that the loan will be repaid.  I have seen no evidence that suggests that these loans are not current in their payments.  If there is a problem with the loan it is up to the lender to seek legal redress and not a prosecutor.